Are you an enrollee in the Federal Long Term Care Insurance Program (FLTCIP)? If so, you will be facing a rate increase on November 1.
The Office of Personnel Management has released information for current enrollees to give them the opportunity to review their current coverage and make decisions that allow them to accept or alleviate the premium increase.
OPM changed providers for FLTCIP to John Hancock Life & Health Insurance Company effective May 1, 2016. John Hancock proposed higher premiums because recent analysis of the program, using updated assumptions based on identified trends and actual claims experience, indicated that the current FLTCIP premiums would not be sufficient to meet the future, projected costs of the benefits.
According to OPM’s letter, affected enrollees will receive a package in the mail with options on how to reduce their coverage to avoid a premium increase. They will have until September 30 to take action, otherwise the premium increase will go into effect.
The current enrollees who will receive an offer package include:
- enrollees whose age at purchase was 79 years or younger
- enrollees who have standard FLTCIP coverage and are not enrolled in the FLTCIP’s Alternative Insurance Plan
- enrollees who applied for coverage before new application rates were raised on August 1, 2015
- enrollees who are not currently eligible for benefits or awaiting a decision on a pending claim
In general, current enrollees have one of the 3 options:
- a premium-neutral option to fully offset the premium increase
- a partial increase, accepting roughly half the premium increase along with moderate coverage reductions
- the full premium increase to retain the current benefits and inflation protection
Additional details are included in OPM’s letter, Federal Long Term Care Insurance Program (FLTCIP) 2016 Enrollee Decision Period, which is included below.